The new all-time high reached by Bitcoin just a week ago did not last long, as just a couple of days later, prices plummeted and the digital currency lost more than a fifth of its value, before a slight correction revived it. The collapse of Bitcoin to $ 46 left a trail of panic, especially as there are strong doubts that the asset could rise any time soon.
Does Tether cause Bitcoin's decline?
Tether fell prey to American regulators who labeled it a fraudulent currency, banned it from trading in New York and sentenced it to a $ 18,5 million fine.
These events have been cited by many as the cause of Bitcoin's crash. The FUD makes it known that much lower price levels are very possible scenarios. But here's what analysts have to say about the most talked about asset of the moment.
To buy or not to buy now?
Of course, this is not financial advice, but technical and fundamental analysis guided the FUD to these conclusions. While most analysts are more optimistic than ever, some insist that those who buy on the downside need to be very careful. In fact, it is recalled that the market did not move in favor of dip-buyers in 2018, saying;
“It turned out to be a fatal mistake buy bitcoin in 2018. As we know, BTC plummeted over 85% and most altcoins went into a death spiral for 2 years, dropping 95-99% ”.
On the contrary, other analysts are optimistic and think that there could be a new bull run soon. Fundamental factors examined include Coinbase's premium performance, miners' activities, and movement of futures funds.
Analyst Joseph Young lays all this bare in the tweet quoted below. “I expect a gradual recovery of Bitcoin. - Coinbase consistently positive - Miners sold a lot of Bitcoins (peak selling pressure) - Future funding rates fully restored - More stablecoin streams and it would be more optimistic ”.
All a whale strategy?
Meanwhile, the head of a Crypto asset management fund is drawing traders' attention to the possibility that whales are dumping prices to persuade retail traders to sell.
“Some people who hold Bitcoin have * weak hands *. People sold 10% more BTC than where Elon just bought $ 1,5 billion. People sold days after the Tether risk was completely removed ”. Furthermore, it must be borne in mind that there are big players who push prices down to fill the offers ”.
At the time of publication, Bitcoin is striving to correct the price upwards. A 4% rise is positioning Bitcoin for a swing towards the previous support. A breakout could usher in a new push to $ 48.000.